Jinjiang, China’s largest hotel operator, is doing pretty well in the food and drink business, not so hot in hotels. First-quarter profit jumped 13% mainly due to increased sales at its franchising food and beverage businesses.
Net income rose to RMB55.86 million ($7.25 million) in the first three months of this year while revenue climbed 13.6% to RMB196.56 million.
So where did the profit come from? Mainly what is referred to as F and B for food and beverage. The company’s 49% owned KFC ventures added eight more outlets in the first quarter, and sales were boosted by 11% to RMB413.18 million. That is a lot of chicken legs leading to a finger lickin’ good profit.
However, revenue from the company’s hotel-management business declined 1.3% to RMB23.59 million. Average occupancy rates at four hotels, in which Jinjiang holds more than 20% of each, rose by 3.7% to 72.4% while room prices fell 6% to RMB1,023.
Source: Shanghai Daily